ANIMAL PARASITICIDES MARKET ANALYSIS

Global Animal Parasiticides Market size is estimated to be valued at US$ 10.8 Bn in 2023 and is expected to reach US$ 16.4 Bn by 2030, exhibiting a compound annual growth rate (CAGR) of 6.1% from 2023 to 2030. The growth in the animal parasiticides market is due to factors such as the increasing prevalence of animal diseases, rising population of livestock animals, and the increasing demand for meat and dairy products.

Global Animal Parasiticides Market Regional Insights

• North America dominates the animal parasiticides market due to its large livestock population as well as a well-established animal health industry presence in the region. North America has a market share of 44.3%. According to the data from the United States Department of Agriculture (USDA) released in January 2022, the cattle population in the U.S. was 91.9 million head of cattle and calves till January 1, 2022, which is one of the largest cattle in the world. This large cattle population has led to a rising demand for parasiticides to control external as well as internal parasites that affect livestock health and productivity. Furthermore, the presence of leading parasiticides manufacturing companies such as Boehringer Ingelheim, a pharmaceutical company, Elanco, animal health company, Zoetis, global animal health company and others  in the region has made it convenient for farmers and livestock owners to access a wide range of parasiticides products.
• Europe is also a significant market for animal parasiticides market, due  to the high infestation rate of external parasites such as ticks and mites on livestock in the region and the availability of rise in investments in research and new product formulations. Europe is estimated to hold approximately 30% of the global market share.
• The Asia Pacific region is expected to witness the fastest growth in the animal parasiticides market during the forecast period. The contribution of the agriculture and livestock sectors to the economy is substantial in many Asia Pacific countries. According to the data published by World Food and Agriculture, in 2022, China was among the three largest producers for each main meat type. China alone accounted for 38 percent of world pig meat in 2020. Moreover, Asia was the largest milk-producing region in 2020 with a 42 percent share of total market. The large and growing livestock population in countries like China and India is driving the demand for animal parasiticides to prevent production losses. Increasing awareness among farmers regarding animal health and growing per capita income are supporting the market growth. Certain countries in Southeast Asia such as Indonesia, Thailand, and Vietnam are also expected to see higher adoption of parasiticides as their livestock farming practices become more organized.

Figure 1. Global Animal Parasiticides Market Share (%), By Region, 2023

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Analyst View of the Global Parasiticides Market:

Global animal parasiticides market is expected to witness significant growth on the back of rising adoption of companion animals worldwide. Increased expenditure on pet healthcare will drive demand for parasiticides to protect dogs and cats from external and internal parasites. Growing awareness about zoonotic diseases may further propel productdemand. However, strict regulations surrounding parasiticide residues in meat and milk may hinder market expansion to some extent.

North America dominates the parasiticides industry, fueled by rising pet ownership in the U.S. and Canada. Strong retail distribution and easy availability of products for companion animals are supporting regional market growth. However, Asia Pacific is likely to emerge as the fastest-growing market, supported by rapid urbanization, an increasing middle class, and rising disposable incomes in India and China. This will increase pet adoption and drive parasiticides consumption.

Global Animal Parasiticides Market Drivers:

• Increasing prevalence of animal diseases: The animal parasiticides market has been witnessing steady growth due to the rising incidence of various animal diseases globally. Parasitic infections in livestock and companion animals remain a major concern, thereby putting medical and economic burden. Various parasites including ectoparasites such as fleas, ticks and mites, and endoparasites such as roundworms, tapeworms and heartworm continuously threaten the health of animals. These parasites can cause severe diseases and infections, thus reducing animal productivity and spreading zoonotic diseases. According to data from the World Organization for Animal Health (WOAH), the reported incidence of animal trypanosomiasis increased by over 15% in 2020-2022 across many African countries where tsetse fly infestation is high. Similarly, cases of heartworm infections in dogs have also risen globally. The Centers for Disease Control and Prevention (CDC) estimates that over 7 million dogs in the U.S. are at risk of heartworm infection, with Texas, U.S. experiencing highest transmission rates.
• Rising meat consumption and growing pet ownership: Growing consumption of meat and animal proteins has boosted the global livestock production which requires proper veterinary healthcare and disease prevention. The Food and Agriculture Organization (FAO) projects that growth in global consumption of meat proteins over the next decade is projected to increase by 14% by 2030. Several countries are experiencing expansion of cattle, pig, and poultry production to meet this growing demand for animal foods. Greater number of food animals raises the risks of parasitic infestations, if not properly managed.
• Stringent regulations regarding animal health: Policy changes across Western nations view companion animals more as members of the family rather than property. According to the 2019/2020 National Pet Owners Survey, 84.9 million homes own a pet, which equates to 67% of U.S. households. As social attitudes shift to emphasize animal welfare, regulations have strengthened to curb the mistreatment and abuse of companion animals. As a result of prioritizing companion animal welfare, demand has grown for parasite preventatives and treatments.
• Technological advancements in parasiticides products: Technological advancements are playing a key role in boosting the animal parasiticides market. Veterinary pharmaceutical companies are investing heavily in research and development (R&D) activities to come up with novel product formulations that improve efficacy and safety. Many new parasiticides products offer longer lasting protection with reduced treatment frequency. This provides better compliance for pet owners and veterinarians. They are also developing parasite control methods that destroy any stages of the lifecycle, thus making them more effective.

Global Animal Parasiticides Market Opportunities:

• Emerging markets in developing countries: Emerging markets in developing countries present a major growth opportunity for the animal parasiticides market. As livestock farming is becoming more mainstream in nations like India, Brazil, and Nigeria, the demand for veterinary pharmaceuticals to protect animal health and welfare is expected to rise significantly in the near future. Farmers and ranchers in the developing world are becoming more aware of the financial and productivity losses caused by parasites and exploring effective preventive and treatment options. For instance, till March 2023, the U.S. Department of Agriculture reports that the growth of India's dairy industry is the primary cause of the rise in the number of cow herds, thereby encompassing both bovine and Asian domestic water buffalo.  In India, the herd size increased to 307.5 million in 2023 from 306.7 million in 2022.
• Increase in pet adoption and expenditure on pet care: The increase in pet adoption and expenditure on pet care presents a great opportunity for growth in the animal parasiticides market. Over the past few years, pet adoption has increased substantially across countries as more people embraced pet companionship during the pandemic. For instance, the American Pet Products Association (APPA) conducted the 2021–2022 National Pet Owners Survey, which found that 70 percent of American homes, or around 90.5 million families, own a pet.
• Growing awareness about zoonotic diseases: Growing awareness about zoonotic diseases being transmitted from animals to humans could present a great opportunity for the animal parasiticides market taking a step forward. Globally, there is rising focus on preventing the spread of diseases like rabies, toxoplasmosis, Q fever, anthrax, and others. which can pass from animals to people. As people and governments realize the public health risks of such zoonotic diseases, there will likely be more investments and initiatives around controlling diseases in animal populations. This in turn, could drive increased demand for various antiparasitic drugs, vaccines, disinfectants, and other parasiticides for livestock as well as pet care.

Global Animal Parasiticides Market Trends:

• Adoption of Integrated Pest Management programs: The adoption of Integrated Pest Management (IPM) programs by farmers and livestock owners is having a significant impact on the animal parasiticides market. IPM is a sustainable approach that uses a variety of methods to control pests, from biological to physical controls, with chemical controls being used as last resort. By focusing on prevention and non-chemical alternatives where possible, IPM programs help reduce the overall use of parasiticides. Many government agencies are promoting IPM practices. For instance, in June 2020, LEAF (Linking Environment and Farming), an organization delivering more sustainable food and farming, launched ‘Simply Sustainable Integrated Pest Management’ which was developed with support from the Crop Protection Association (CPA).
• Increasing demand for organic and natural parasiticides: Globally, the demands for organic and natural parasiticides for animal healthcare is rising substantially. Animals reared for milk, meat, and other products are being given more natural treatment to control parasites like ticks and fleas. Farmers and pet owners alike prefer botanical or plant-derived formulations that are perceived as safer and more eco-friendly alternatives to chemical parasiticides. This shift is being fueled by increasing health consciousness among consumers and recommendation of veterinarians to use gentler treatment options.
• Consolidation activities by major players: Consolidation among the major market players in the animal parasiticides market has been steadily increasing over the past few years. Major companies have been acquiring smaller to mid-sized firms to expand their product portfolios and geographical reach. This trend of consolidation allows the market players to gain access to new technologies and products in a faster manner than developing them in-house. It also provides economies of scale in manufacturing and distribution. For instance, in September 2022, Merck Animal Health, a part of Merck & Co., Inc., has announced that it has signed a formal agreement to acquire Vence, a pioneer in the field of virtual fence for livestock management and rotational grazing, from its founders and the shareholders. Global Animal Parasiticides Market Restraints:
• High research and development costs for new product development: High research and development (R&D) costs for new product development has been a major barrier inhibiting the growth of the global animal parasiticides market. Developing new parasiticides requires extensive research, testing, and clinical trials which requires significant costs. Bringing a new parasitic drug to the market often takes 8 to 10 years and costs anywhere between US$50- US$100 million. This prolonged timeline and heavy capital requirements make it an extremely expensive and risky endeavor for companies. For instance, in 2020, according to Food and Agriculture Organization (FAO), over 75% of livestock in Africa are owned by resource-poor small scale farmers and herders who often cannot afford premium priced novel drugs.
• Environmental concerns regarding use of parasiticides: Environmental concerns surrounding the use of parasiticides are posing significant restraints on the growth of the global animal parasiticides market. Farming and livestock rearing practices that involve excessive or improper use of these chemicals can have detrimental effects on the surrounding ecosystem. Many parasiticides are toxic in nature and tend to accumulate in the soil if not disposed of properly. Their residual effects and potential leakage into water bodies through runoff can harm other organisms and disrupt the fragile balance within the natural environment.

Counterbalance: The use of the parasiticides should be proper and must not be detrimental and hazardous to the surrounding ecosystem. Proper disposal methods of the parasiticides should be undertaken by the key market players.

• Risk of product residue in meat and milk: The major concern restraining the growth of the animal parasiticides market is the risk of residue in animal-derived food products such as meat and milk. When veterinary medicines, containing parasiticides, are administered to food-producing animals, there is a possibility of small quantities of the active ingredients or their metabolites remaining in tissues and bodily secretions. These residues have the potential to persist until slaughter or lactation and may lead to accidental human ingestion. Several regulatory authorities including the U.S. Food and Drug Administration (U.S. FDA) and the European Medicines Agency (EMA) have stringent maximum residue limits and withdrawal periods for animal parasiticides to ensure consumer safety. Non-compliance with these regulations could result in contamination of meat or milk, thus leading to severe economic losses for farmers and loss of consumer trust in animal-derived products.

Recent Developments

New product launches/approvals

• In April 2022, Vetoquinol, a worldwide animal health firm, announced that Felpreva is available for prescription by veterinarians in five European countries: France, Germany, the U.K,, Austria, and Italy. Felpreva is a breakthrough in parasitology for companion animals. It is the first three-month spot-on parasiticide for cats that treats ectoparasites, including hookworms, roundworms, and lungworms, in addition to tapeworms, all in one dosage.
• In August 2023, Boehringer Ingelheim, a human and animal health firm, launched the NexGard (afoxolaner) S and M in India. NexGard is a monthly treatment that kills fleas before they can lay eggs, ticks, and mites. It is recommended for use in dogs and puppies starting at eight weeks of age. The chewables have a delicious flavour.
• In May 2023, Merck Animal Health, a division of Merck & Co., Inc., announced that BRAVECTO (fluralaner), a novel injectable formulation, has been approved by the Australian Pesticides and Veterinary Medicines Authority (APVMA) for the treatment and prevention of flea infestations for a period of 12 months, as well as for the control of (Rhipicephalus sanguineus) for a period of 11 months, and flea allergy dermatitis (FAD).     

Business and Product Acquisitions

• In September 2022, Zoetis Inc., a global animal health company, announced the completion of its purchase of Jurox, a privately held animal health company that develops, produces, and markets a diverse range of veterinary medications for livestock and companion animals.
• In September 2020, Boehringer Ingelheim, a global pharmaceutical company, and the Fraunhofer Institute for Molecular Biology and Applied Ecology IME have announced a new collaboration that aims to provide novel, microbial-based natural products for the development of next-generation animal health products that combat parasitic diseases.
• In July 2020, Merck Animal Health, a division of Merck & Co., Inc., announced the completion of its previously announced acquisition of the U.S. rights to SENTINEL FLAVOR TABS and SENTINEL SPECTRUM Chews in the companion animal category from Virbac.

Figure 2. Global Animal Parasiticides Market Share (%), By Product Type, 2023

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Top Companies in the Global Animal Parasiticides Market

• Zoetis Inc.
• Boehringer Ingelheim
• Elanco Animal Health
• Merck Animal Health
• Bayer
• Vetoquinol
• Ceva Santé Animale
• Neogen Corporation
• Dechra Pharmaceuticals
• Heska Corporation
• Norbrook Laboratories
• Idexx Laboratories

Definition: Animal parasiticides refer to medications that are used to eliminate parasites that infect livestock, household pets, and other animals. There are various types of parasiticides that target different parasites. The main types include endectocides, ectoparasiticides, and endoparasiticides. Endectocides help control both external and internal parasites simultaneously. They are most commonly used for large animals and work by disrupting the nervous systems of parasites. Ectoparasiticides are formulated to kill external parasites like fleas, ticks, and mites. They are often found in spot-ons, sprays, and shampoos. Endoparasiticides treat internal parasites such as roundworms, hookworms, tapeworms, and heartworms. They are available as oral pills, chewables, and injections that work by paralyzing or killing the parasites in the digestive tract or bloodstream.